1. (1) As used in this section:

   1. (a) "Blockchain" means a digital ledger of transactions:

      1. (i) that is distributed across multiple nodes;
      2. (ii) that is mathematically verified; and
      3. (iii) where the validity of transactions is maintained by consensus of nodes.
   2. (b) "Blockchain administrator" means a person that is responsible for maintaining and overseeing a blockchain.
   3. (c) "Division" means the Division of Consumer Protection created in Section 13-2-102.

   4. (d) "Fraudulent transaction" means a transaction that a person undertakes with the intent to deceive another person, including a transaction that involves:

      1. (i) false representation;
      2. (ii) omissions of material fact; or
      3. (iii) the use of a false or stolen identity.
   5. (e) "Node" means a computer connected to a blockchain.

   6. (f) "Proof of identity" means government-issued identification that contains the following information:

      1. (i) a person's name;
      2. (ii) an individual's date of birth;

      3. (iii) a person's address, which is:

         1. (A) for an individual, a residential or business street address;
         2. (B) for an individual who does not have a residential or business street address, a Post Office box number or the residential or business street address of next of kin or of another contact individual; or
         3. (C) for a person other than an individual, the principal place of business; and

      4. (iv) an identification number, which is:

         1. (A) for a United States person, a taxpayer identification number; or
         2. (B) for a non-United States person, a taxpayer identification number, passport number and country of issuance, alien identification card number, or the number and country of issuance of any other government-issued document evidencing nationality or residence and bearing a photograph or similar safeguard.

   7. (g) "Reversible blockchain" means a blockchain that:

      1. (i) requires the blockchain's users to:

         1. (A) provide proof of identity to the blockchain administrator;
         2. (B) acknowledge and agree that all transactions occurring on the blockchain are subject to reversal by a sheriff node; and
         3. (C) agree to be subject to jurisdiction of a court in Utah; and

      2. (ii) requires the blockchain administrator to:

         1. (A) verify a user's identity by checking the user's proof of identity against government-issued identification databases; and
         2. (B) maintain records of a user's proof of identity for a minimum of five years.
   8. (h) "Sheriff node" means the same as that term is defined in Section 67-5-39.
   9. (i) "Transaction" means the transfer of digital assets, rights, privileges, or obligations from one person to another that occurs on a blockchain.

   10. (j)

       1. (i) "User" means a person that interacts with a blockchain.

       2. (ii) "User" includes a person that is:

          1. (A) sending or receiving transactions;
          2. (B) accessing data stored on the blockchain;
          3. (C) participating in consensus or governance mechanisms;
          4. (D) running a node on the blockchain;
          5. (E) interacting with smart contracts or decentralized applications; or
          6. (F) holding or managing digital assets.

2. (2) A plaintiff may bring a cause of action against a person to reverse:

   1. (a) a fraudulent transaction if:

      1. (i) the transaction occurred on a reversible blockchain;

      2. (ii) the plaintiff entered into the transaction with reasonable reliance on the person's:

         1. (A) fraudulent representation;
         2. (B) omission of material fact; or
         3. (C) use of a false or stolen identity; and
      3. (iii) the plaintiff was injured as a result of that reasonable reliance; or

   2. (b) a mistaken transaction if:

      1. (i) the transaction occurs on a reversible blockchain;

      2. (ii) the transaction resulted in a transfer of assets:

         1. (A) to the wrong recipient; or
         2. (B) in the wrong amount; and
      3. (iii) the recipient's refusal to return the assets resulted in the unjust enrichment of the recipient.
3. (3) Upon a finding of a mistaken or fraudulent transaction, the court shall issue an order to the Office of the Attorney General to reverse the transaction in accordance with Section 67-5-39.

Amended by Chapter 95, 2026 General Session